With the expected implementation of the China-US trade agreement leading to the resumption of supplies from the United States to the world’s largest soybean importer, the prices of soybeans in South America have recently dropped. Chinese soybean importers have recently accelerated their purchases of Brazilian soybeans.
However, after this tax cut, Chinese soybean importers still have to bear a 13% tariff, which includes the original 3% basic tariff.Three traders said on Monday that buyers have booked 10 ships of Brazilian soybeans for shipment in December, and another 10 ships for shipment from March to July. Currently, the price of soybeans from South America is lower than that of US soybeans.
“The price of soybeans in Brazil is now lower than that in the Gulf region of the United States. Buyers are taking the opportunity to place orders.” A trader from an international company operating an oilseed processing plant in China said, “The demand for Brazilian soybeans has been continuously increasing since last week.”
After the meeting between China and the US last week, China agreed to expand its agricultural trade with the US. The White House later released the details of the agreement, stating that China will purchase at least 12 million tons of current soybeans and will purchase at least 25 million tons each year for the next three years.
The White House later released details of the agreement, showing that China will purchase at least 12 million tons of current soybeans and at least 25 million tons each year for the following three years.
China National Food Corporation was the first to purchase from this year’s US soybean harvest last week, acquiring a total of three ships of soybeans.
Boosted by China’s return to the US market, Chicago soybean futures rose nearly 1% on Monday, climbing to a 15-month high.
On Wednesday, the State Council’s Tariff Commission announced that starting from November 10th, the highest 15% tariffs imposed on some American agricultural products would be lifted.
However, after this tax reduction, Chinese soybean importers still have to bear a 13% tariff, including the original 3% base tariff.COFCO Group was the first to purchase from this year’s US soybean harvest last week, buying a total of three shipments of soybeans.
A trader said that compared to Brazilian alternatives, this makes American soybeans still too expensive for buyers.
Before Donald Trump took office in 2017 and the first round of the Sino-US trade war broke out, soybeans had been the most important commodity exported by the United States to China. In 2016, China purchased soybeans worth 13.8 billion US dollars from the United States.
However, this year China largely avoided purchasing the autumn harvest crops from the United States, resulting in losses of several billion dollars in export income for American farmers.Chicago soybean futures rose nearly 1% on Monday, climbing to a 15-month high, boosted by China’s return to the US market.
Customs data shows that in 2024, approximately 20% of China’s soybean imports came from the United States, significantly lower than the 41% in 2016.
Some market participants are skeptical about whether the soybean trade can return to normal in the short term.
“We don’t think that Chinese demand will return to the US market due to this change,” a trader from an international trading company said. “The price of Brazilian soybeans is lower than that of the US, and even non-Chinese buyers are starting to purchase Brazilian goods.”
Post time: Nov-07-2025